Canaan, a renowned cryptocurrency firm, recently published its Q4 earnings report. The firm astonishingly recorded positive results despite the bad market situation experienced in 2022’s q4. Canaan’s total computing power sold for the fourth quarter of 2022 was 1.9 million Thash/s, representing a decrease of 45.8% from the third quarter of 2022 and a decrease of 75.8% from the same period of 2021.
Revenues for the fourth quarter of 2022 were RMB391.9 million (US$56.8 million), representing a decrease of 59.9% from the third quarter of 2022 and a decrease of 82.1% from the same period of 2021.
A deeper look at how Canaan fared in 2022
Mining revenue for the fourth quarter of 2022 was RMB72.2 million (US$10.5 million), representing an increase of 16.3% from the third quarter of 2022 and an increase of 368.2% from the same period of 2021.
For the full year of 2022, Canaan’s total computing power sold was 15.1 million Thash/s, representing a year-over-year decrease of 32.4% from 22.3 million Thash/s in 2021. Revenues were RMB4,378.9 million (US$634.9 million), compared to RMB4,986.7 million in 2021. Mining revenue was RMB218.6 million (US$31.7 million), compared to RMB21.7 million in 2021.
Statements from the firm’s executives
In a statement, Canaan’s CEO, Mr. Nangeng Zhang, acknowledged the tough fourth quarter due to the further sinking Bitcoin price, which led to lackluster market demand for mining machines. He expressed confidence in the company’s ability to overcome challenges and capture more market opportunities in the rising Bitcoin cycle. Mr. Zhang also mentioned the company’s efforts to improve and develop its mining business, including making decisive investments in bolstering production capacity and expanding mining operations to more varied geographic regions that offer advantageous conditions.
Canaan’s CFO, Mr. James Jin Cheng, reported that the company achieved better-than-expected total revenues in the fourth quarter of 2022 despite very soft market demand and low selling prices. He attributed the gross loss to greater depreciation resulting from the company’s growing Bitcoin mining fleet and an additional inventory write-down of RMB205.3 million due to the low demand and low selling prices. He also mentioned that the company made substantial prepayments to secure wafer production capacity in support of its continued mining scale growth and machine sales in preparation for the approaching cyclical upswing in the Bitcoin price.
